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My mate has a loan from LLoydsTSB which was for 7K taken out mid 2010 over 48 months. With the interest added it came to about 10K.
He has made every monthly payment of £300 on time. His online banking says that the present balance is £4200.
He has asked for a settlement figure from Lloyds as he has now the possibility of clearing it after being made redundant. The settlement figure they have come up with is £4300.
He spoke to Lloyds and was told that the figures on online banking are not accurate as they do not take into account the interest. They have calculated the amount paid to date and subtracted that from the original 10K figure leaving an amount of £4700 left to pay if he didn't settle. Then from this £4700 figure they have given him £390 early settlement rebate leaving £4300 to pay.
Is there any way of checking their figure to see if this is correct. I would have thought that clearing the loan some 16 months early would have had a larger rebate than £390, but am I right?
He has made every monthly payment of £300 on time. His online banking says that the present balance is £4200.
He has asked for a settlement figure from Lloyds as he has now the possibility of clearing it after being made redundant. The settlement figure they have come up with is £4300.
He spoke to Lloyds and was told that the figures on online banking are not accurate as they do not take into account the interest. They have calculated the amount paid to date and subtracted that from the original 10K figure leaving an amount of £4700 left to pay if he didn't settle. Then from this £4700 figure they have given him £390 early settlement rebate leaving £4300 to pay.
Is there any way of checking their figure to see if this is correct. I would have thought that clearing the loan some 16 months early would have had a larger rebate than £390, but am I right?
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